New Cashback and Eligibility Changes for Space Heaters in Victoria
The Victorian Energy Upgrades (VEU) program is making significant changes to space heating activities in May and June this year.
These changes are all part of Victoria's Gas Substitution Roadmap. To find out more about the roadmap, click here
To help you navigate the changes, we’ve created a comprehensive list of Frequently Asked Questions about how to work with the new acitivities.
Frequently Asked Questions about the changes in Space Heating Activities
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Current activities incentivising the installation of high-efficiency gas space-heating systems are being removed from the scheme.
New activities incentivising the removal of old gas heaters are being introduced to the scheme
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New activities will be introduced to the scheme on 31 May 2023
Old activities will be removed from the scheme on 30 June 2023
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Part 6 (scenarios A to G) – Installing a high efficiency air conditioner
6A - Ducted air to air < 10 kW
6B - Ducted air to air 10 kW ≤ to ≤ 39 kW
6C - Ducted air to air 39 kW < to ≤ 65 kW
6D - Non-ducted air to air < 4 kW
6E - Non-ducted air to air 4 kW ≤ to < 10 kW
6F - Non-ducted air to air 10kW ≤ to ≤ 39kW
6G - Non-ducted air to air 39kW < to ≤ 65kW
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Yes
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You can only claim VEECs for replacement of electric resistance (i.e., hard-wired) or gas heaters.
However you can claim VEECs for new systems where there was no incumbent system being replaced which will cover the remaining baseline scenarios.
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No, you can only create VEECs for installing Ducted and Split RCACs. On the GEMS register this is anything between classes 6 and 21.
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Here’s the description of the systems eligible to be decommissioned and create VEECs as per the VEU consultation document: Definition of equipment that can be decommissioned
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No.
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Residential premises - up to 39kW
Commercial premises - up to 65kW
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Yes. you can check them by clicking here.
If a ducted gas system is being decommissioned and replaced with multiple non-ducted RCAC units at a residential premises:
A consumer can access incentives for decommissioning their ducted gas system while installing one non-ducted RCAC.
Incentives for a further three non-ducted RCAC can be claimed under the ‘no decommissioning’ scenario.
A total of four non-ducted systems will have been installed – and as the no decommissioning limit of three has been reached, this means that no further non-ducted systems can be installed under the ‘no decommissioning’ scenario.
A fifth non-ducted RCAC can only be installed if another heating appliance (other than the ducted gas) is decommissioned. Many of the decommissioning upgrades will not be applicable as ducted gas is the main form of heater in the premises. Only additional room gas heaters, or existing non-ducted reverse cycle air conditioners can be decommissioned if present and replaced with an RCAC.
Multi-split units are treated as ONE decommissioned scenario.
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Yes - the building where the upgrade is taking place must be more than two years old. There is no restriction on the age of the system being replaced.
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Yes, products will need to be approved by the VEU. Product suppliers will need to lodge their product approval applications with the VEU directly.
Code of Conduct and customer satisfaction requirements
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Installers/sellers are obligated to provide several documents to end consumers to ensure they meet the requirements of the VEU program. These include:
The VEU Consumer Fact Sheet,
The VEU Consumer Statement of Rights; and,
For all water heating installations end consumers must be provided with a copy of the VEU Sizing Fact Sheet. The water heating Sizing Fact Sheet must be provided to the end consumer at the point of sale of the system.
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You can find copies of the Consumer Fact Sheet and details about the VEU Code of Conduct here
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The VEU space heating and cooling sizing fact sheet can be found here
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Under sized systems will not be capable of delivering the necessary space heating/cooling.
Over sized systems will mean energy and emissions savings are missed.
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Click here to see the recommended sizes for single-split or multiple split RCACs.
For ducted air conditioners, the department recommends providing 0.8 to 1.3kW of cooling output for every 10m2 of space covered. For example, a dwelling with ducted RCAC covering an area of 150m2 would have a recommended cooling output of 12 to 17 kW.
The above recommendations are made based on an average home. The following considerations should also be factored in to any installations:
draughts and weather sealing;
insulation in the roof, walls and floor;
windows size, glazing and orientation; and
ceiling height
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The fact sheets provide general sizing recommendations. A more detailed assessment by licensed installers will be required to ensure the product installed fits the needs of the consumers. In addition, the features and capabilities of products available under the VEU program vary. For this reason, accredited providers and scheme participants are not mandated to install a system that aligns with the recommended sizing range in the fact sheets.
If the system does not meet the sizing guidelines this is okay however the end consumer will need to sign a declaration confirming the system is fit-for-purpose.
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Anything that may benefit or annoy the consumer, including:
noise and system placement;
local climate; and
making use of electricity generated from solar PV (where applicable).
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If the removal will require major patch-up work it is expected this will be negotiated between the end consumer and installer prior to the works being agreed to. If minor patch-up work is required it is expected this will be completed by the installer as required.
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To help monitor compliance with the VEU code of conduct obligations.
The code places obligations for lead generators to disclose information to consumers, including their company details and the name of the accredited person creating certificates. The code also requires us to keep accurate records of any lead generation or marketing activities conducted on our behalf by third parties.
Decommissioning:
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No - old systems must be rendered permanently inoperable or destroyed and cannot be re-sold.
Any waste or debris generated by the upgrade, including the decommissioned product (where it is practical and safe to remove the decommissioned product), must be removed from the consumer’s premises and disposed of in accordance with all applicable waste management legislation.
This means you cannot keep the removed decommissioned system onsite to be repurposed for some other reason.
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All replaced systems must be decommissioned by:
A plumber if the installation involves plumbing work; or,
An electrician if the installation involves electrical work
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Old systems can be left onsite and in place under the following circumstances:
where removal is impractical (e.g. central electric resistance heating systems and slab heating systems)
where removal would result in substantial remediation work to the building environment
where removal would raise safety risks (e.g. where removal of product raises asbestos issues and/or other health and safety issues)
If the old product is not safe and practical to remove, it is expected that consumers are informed that the product will be left in-situ before the consumer agrees to undertake the upgrade.
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Yes - any refrigerant contained in the product must be disposed of in accordance with the requirements set out under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Cth).
Any refrigerant contained in the unit must be recovered by a licensed professional holding the appropriate refrigerant licence issued by the Australian Refrigeration Council (ARC).
Installers must also provide an Invoice or receipt for the refrigerant recovery and disposal including the agent’s refrigerant handling license number
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You’ll need to provide photos showing the method of decommissioning and possibly the reason as to why it was unsafe/impractical to remove the old system - waiting on further guidance on this
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The certificate (Plumbing COC or CoES) must detail:
the type of the product decommissioned
the brand and model of the decommissioned product where visible
the method of decommissioning.
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Clients must provide the following photos:
the existing product before the upgrade
the brand, model and serial number of the existing product
the existing product either disabled or rendered permanently unusable (where the product is not being removed from premises for disposal)
The removed product located next to the surface to which it was previously attached showing the condition of the surface following completion of the upgrade (where the existing product is removed).
Installers and Consumers will also need to sign a declaration on the Assignment Form attesting that the old system was decommissioned in a safe and practical manner and removed from the premises (where safe to do so).
You can rely on Geo to quote cashback
Make creating a new assignment form in Geo part of your quoting process. Geo will show you which cashback your job can claim based on the installation date.
For jobs scheduled after 30 June 2023 - Remember
No Cashback for:
❌ New ducted evaporative coolers replacing existing evaporative coolers
❌ New ducted gas heaters in new buildings or replacing old ducted gas heaters or electric resistance heaters and
❌ New gas/LPG room heaters replacing hard-wired electric room heaters, plug-in electric room heaters, wood-fired heaters and gas/LPG or other room heater
Cashback for
✅ New activities for replacing of ducted and non-ducted gas heating systems with energy efficient duct and split system air-conditioning systems
We are here to help you adapt your business to these cashback changes.
CALL US ON 1300 077 784